Seek Limited · ASX:SEK
Seek — H1 FY2025 Earnings Presentation
44 slides from Seek's earnings presentation, Feb 18, 2025
Slide 1: SEEK Limited – FY2025 Half Year Results Presentation
18 February 2025 The Manager ASX Market Announcements Office Australian Securities Exchange Dear Manager SEEK Limited – FY2025 Half Year Results Presentation In accordance with the Listing Rules, I enclose SEEK’s FY2025 Half Year Results Presentation for immediate release to the market. Yours faithf
Slide 2: SEEK Limited Half Year Results
SEEK LIMITED Half Year Results 31 December 2024 «a Seek and you shall find
Slide 3: Disclaimer
Disclaimer The material in this presentation has been prepared by SEEK Limited ABN 46 080 075 314 (“SEEK”). Presentation Includes general background information about SEEK’s activities, current as at the date of this, presentation. The information is given in summary form and does not purport to be
Slide 4: Acknowledgement of Traditional Custodians
ts] seek SEEK acknowledges the Traditional Custodians of the lands on which it operates. We extend this acknowledgement to all First Nations peoples across the Asia-Pacific region in which SEEK is proud to operate. We pay respects to their rich cultures, to Elders past and present, and the continuin
Slide 5: H1 25 overview
H1 25 overview Market update Strategic delivery Financial review Outlook
Slide 6: H1 25 overview
Slide 7: H1 25 highlights
'H125 highlights le, | an es 1 H125 oute Strong trajectory Double digit yield Total expenditure 7 Free cash flow Increase in the across all brand growth across 6% lower than ‘8: 93% higher than SEEK Growth metrics: ANZ APAC maintaining prior period; iif prior period Fund (“the Fund”) placement share
Slide 8: Financial overview
Financial overview Revenue EBITDA Total expenditure $536.2m $223.9m $373.1m down 4% down 9% down 6% Adjusted Profit Reported Profit Free cash flow $77.0m $139.8m $81.8m down 28% pcp: $29.9m up 93% 7 Financial results from Continuing Operations. Results on a Total Operations basis included on page 25
Slide 9: Market update
Slide 10: ANZ: Market update
9 ANZ: MARKET UPDATE Australian job ad volumes stabilising and candidate activity rising Monthly paid ad volumes! and unique hirers (‘OOOs) + Australian ad volumes were down 12% however the 300 rate of decline eased during the period 950 BAVAC Aen + NZ ad volumes were down 26% vs pcp -14% ' a oe 200
Slide 11: Asia: Market update
ASIA: MARKET UPDATE Candidate visits higher in all Asia markets but paid ad volumes down + Paid ad volume growth in Malaysia was offset by declines in all other markets. Hong Kong saw the largest market decline + New freemium model in the Philippines increased total ads (free and paid) and led as ex
Slide 12: Strategic delivery
Strategic delivery
Slide 13: Strategic focus
Strategic focus Growing Growing Operating yield leverage placements $2bn revenue opportunity and >50% margins by FY28 SEEK’s aspirational revenue opportunity is not guidance nor a prediction of a future matter. It is provided as an example of the outcomes management is currently e@ seek focused on a
Slide 14: Delivery against strategy in H1
H1 25 STRATEGIC DELIVERY Delivery against strategy in H1 25 Growing Operating yield leverage Growing placements Free cash flow higher despite ANZ Reser in all Ao maketso PM CLS cetera weaker macro environment Driven by: Driven by: Driven by: + Proactive personalised experiences + Variable pricing +
Slide 15: Placements: Competitive metrics
PLACEMENTS: COMPETITIVE METRICS Leading placement share across all markets Current share of placements! Historical placement share Australia! 4.0x lead vs nearest competitor; 92% brand awareness 35.4% 4 32.8% Rey 30.8% | | I | H123 H2 23 H1 24 H2 24 H125 1. Refer to metrics details (E) and (F) on pa
Slide 16: Placements: Product delivery – enhanced functionality
15 PLACEMENTS: PRODUCT DELIVERY Enhanced functionality driving placements Growing placements Product Personalised experiences Better matches Marketplace trust delivery Proactively meeting candidate Enhancing data, Al and targeting Digitising real world credentials . More highly engaged . Baa Better
Slide 17: Surfacing more personalised recommendations to complement search
PLACEMENTS: PRODUCT DELIVERY Surfacing more personalised recommendations to complement search Growing placements Homepage job feed Dynamic notifications @ SCALED IN H125 e seek @ APAC Enter suburb city, or region @ ANZ, TH, HK Jobs you may have missed Matches to your preference, posted a few days ag
Slide 18: Innovating with AI to generate better search and match
PLACEMENTS: PRODUCT DELIVERY Innovating with Al to generate better search Growing placements and match between candidates and hirers Conversational search LAUNCHED IN H125 @ APAC New Al search query experience to help candidates more fully express their needs. Improved bi-lingual capabilities across
Slide 19: Building trusted connections between hirers and job seekers
SEEK Pass @ APAC Completed rebrand from Certsy to SEEK Pass and launched in all Asia markets. Released current workplace verifications across APAC. Deepened integration with SEEK. PLACEMENTS: PRODUCT DELIVERY Building trusted connections between hirers and job seekers John Smith @ Digital ID @ SCALE
Slide 20: Freemium model capturing immediate ad scale
PLACEMENTS: PRODUCT DELIVERY Freemium model capturing immediate ad scale Growing placements Freemium provides hirers: Status of freemium roll-out Ability to post all their ads on SEEKno matter roars their budget ") Philippines @LIVE May 2024 Thailand @LIVE Oct 2024 Access to SEEK’s Al powered platfo
Slide 21: Yield: More choice and greater value for hirers
20 YIELD: METRICS More choice and greater value for hirers supporting growth in yield H1 25 yield growth H1 25 drivers Historical yield growth ANZ Increase in variable pricing across all ad types including branded add-ons Increase in depth adoption of premium ads and the new mid-tier ad Continued st
Slide 22: Expanding the ad product suite
21 YIELD: PRODUCT DELIVERY Expanding the ad product suite to enable Growing Growing placements yield hirers to maximise their ROI Free Lite ad (@SCALEDINH125 ) (@ASIA_) An option for easier-to-fill roles, with lower visibility in search results and matching performance. Mid-tier ad (@ LAUNCHED INH12
Slide 23: Upgrade pathways and ad enhancements
22 YIELD: PRODUCT DELIVERY Offering hirers more flexibility through “ae upgrade pathways and ad enhancements Upgrade pathways (@SCALED INH125_) (@TH,PH,ID ) Hirers who access free job ads have the flexibility to upgrade to paid ads to get more visibility for roles that need it, such as urgent or com
Slide 24: Operating leverage: Total expenditure
23 OPERATING LEVERAGE: TOTAL EXPENDITURE . . . GES Investing in customer experience and e e e e e innovation while reducing total expenditure Capex ($m) down 29% I 82 86 | 54 i ol H122! H123 H1 24 H125 H1 22! H1 23! H1 24 H125 ™ Opex (underlying) Platform Unification ™ Capex (underlying) ci Platform
Slide 25: Financial review
Financial review
Slide 26: Financial result
25 H1 25 RESULT Financial result Constant currency $m H125 H124 Growth $ Growth % growth Continuing Operations ANZ! 416.3 435.0 (18.7) (4%) (4%) Asia 119.9 123.0 (3.1) (3%) (3%) Revenue 536.2 558.0 (21.8) (4%) (4%) Operating expenses (312.3) (312.0) (0.3) (0%) (0%) Capital expenditure (60.8) (86.0)
Slide 27: H1 result – Revenue
26 H1 25 RESULT - REVENUE Yield growth offset majority of volume reduction ANZ revenue ($m) -4% y H1 24 Volume Yield Other H125 H125 H124 Volume and yield growth Paid ad volumes vs pcp -14% -20% Yield vs pcp +10% +13% Job ad product mix Classic ads 28% 30% Classic ads (branded add-on) 61% 60% Premiu
Slide 28: H1 result – Adjusted Profit
H1 25 RESULT - ADJUSTED PROFIT Lower revenue impacting earnings Adjusted Profit ($m) + Lower revenue due to a reduction in job ad volumes partially offset by higher yield a + Opex inline with pcp — + Higher D&A driven by completion of Platform |_| Unification during FY24 + Lower tax expense due to r
Slide 29: H1 result – Cash flow
H1 25 RESULT - CASH FLOW Free cash flow growth despite lower revenue Cash flow reconciliation $m H125 H124 Change °_ Freecash flow of $81.8m was 93% higher Net cash from operating activities 143.9 132.2 11.7 (up $39.4m), driven by: Cash conversion ratio 91% 85% +6ppt - a $27.7m reduction in cash cap
Slide 30: H1 result – Balance sheet
H1 25 RESULT - BALANCE SHEET Net leverage stable; debt maturity extended Net debt $m H125 FY24 Change + Net leverage ratio was stable vs pcp. Net Cash and cash equivalents 204.7 199.4 5.3 leverage ratio is targeted to be below 2.5x Short-term deposits 0.3 0.2 0.1 * Total facilities of A$1,731m with
Slide 31: SEEK Growth Fund
SEEK GROWTH FUND Portfolio valuation up 5% in H1 25; up 30% since creation H1 25 performance + The Fund’s portfolio valuation was up 5% to $2,208m (FY24: $2,108m) due to: - the planned partial sell down of Employment Hero at a 19% premium to the Fund’s FY24 carrying value; and - uplift in HR SaaS po
Slide 32: Capital management approach
31 CAPITAL MANAGEMENT APPROACH Approach towards capital returns from the Fund Shien qpEreting cacitilers te Liquidity from the Fund + Liquidity from the Fund: The Fund has agreed to sell down part of its Employment Hero stake to funds managed by KKR Long-term investment - Product & tech investment O
Slide 33: Sustainability
SUSTAINABILITY Committed to preventing exploitative recruitment Human rights: fair hiring and modern slavery 100% of direct and indirect job ads scanned for identified fair hiring risks across APAC Approximately 10% escalated for manual review 2% of hirers excluded (1,285 hirers) during onboarding b
Slide 34: Outlook
Slide 35: FY trading outlook
OUTLOOK FY 25 trading outlook + Labour market conditions are evolving differently across APAC - The decline in job ad volumes in Australia has begun to stabilise - Labour markets are showing signs of improvement in Malaysia and some of the emerging markets in Asia - Conditions in New Zealand and Hon
Slide 36: FY25 guidance
OUTLOOK FY25 guidance FY25 mid-point revenue guidance unchanged and total expenditure guidance improved Prior guidance Current guidance Revenue ~$1.02bn - $1.14bn ~$1.06bn - $1.10bn Total expenditure ~$760m - $790m ~$750m - $770m EBITDA ~$430m - $500m ~$440m - $470m Adjusted Profit ~$130m - $180m ~$
Slide 37: Appendix
Slide 38: Reconciliation of Adjusted to Reported results
APPENDIX Reconciliation of Adjusted to Reported results H125 H124 Restated $m . SEEK rn . SEEK wee Adjusted Growth Significant Reported Adjusted Growth Significant Reported Revenue 536.2 - - 536.2 558.0 - - 558.0 Opex (312.3) - - (312.3) (312.0) - - (312.0) EBITDA 223.9 - - 223.9 246.0 : : 246.0 D&A
Slide 39: Metrics
APPENDIX Metrics Monthly paid ad A volumes (Australia) Paid ad volumes differs to the SEEK Employment Index (SEI) due to factors including seasonality adjustments and treatment of duplicate ads applied to the SEI Applications per ad B Australia) Applications per ad are seasonally adjusted; index 201
Slide 40: Definitions
39 APPENDIX Definitions Adjusted Profit/(Loss) Reported Profit/(Loss) excluding the results from SEEK’s interest in the Fund and significant items Capex Capital expenditure for intangibles and property, plant and equipment Carried interest liability SEEK’s share of carried interest may be payable at
Slide 41: Additional information on investments
Slide 42: Accounting for the Fund and Zhaopin
INVESTMENTS Accounting for the Fund and Zhaopin SEEK Growth Fund Zhaopin $m H125 FY24 Change $ RMBm H125 H124 Growth % Portfolio valuation 2,208.4 = 2,107.5 100.9 Pro forma (100% basis) Uncalled committed capital 69.3 76.0 (6.7) Online revenue 760.3 815.6 (7%) Other net assets of the Fund 13.9 1.4 1
Slide 43: Additional SEEK Growth Fund information: investment themes
42 ADDITIONAL SEEK GROWTH FUND INFORMATION Investments across three priority themes Investment themes H125 performance Businesses For H1 25 the entire ESV portfolio look-through revenue was $177m, growth of 9% vs pep. ESV portfolio excludes OES & Coursera. HR SaaS Cloud-based solutions to businesses
Slide 44: Top investments comprise 79% of the Fund's valuation
ADDITIONAL SEEK GROWTH FUND INFORMATION Top 4 investments comprise 79% of the Fund’s valuation Markets Last major capital raise Capital position H125 performance €9 employmenthero. Australia, NZ, UK, SE Asia Oct 2023: $263m total ($125m primary). Included external capital 2+ years of cash runway Str